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The sale process for Twitter (NYSE: TWTR) is clearly not going well. Shares have now given back all of the gains following the September 23rd report from CNBC's David Faber that the company was moving closer to a sale... and then some.

Shares of Twitter were at $18.63 prior to the Faber report. They traded as high as $25.25 following the report and now stand at just $17.35... a collapse of 31% from the post-rumor highs.

Looking at the prices above, one would think the market has now gotten too oversold on Twitter. However, another number to look at is the June 10th close of $14.02. This was the closing price the Friday before Microsoft bought LinkedIn... when takeover rumors really started heating up. This could suggest Twitter has more downside from here.

That said, recent reports suggesting buyers have parted ways could be part of the negotiation tactic on the buyers side. Also, the sell-off could make the board more open to a lower price. Recent reports suggested the company was looking for north of $40. Well, the company may have to settle for a number in the mid-$20s to get a deal done.

Overall, while the sale process has been a catastrophic mess we don't think it is over yet.